Direct Loan Rates Locked In: Borrowers Yawn Collectively
Published Date: 9/10/2026
Notice
Summary
Federal Student Aid announces the interest rates for Federal Direct Stafford/Ford Loans (Direct Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans), and Federal Direct PLUS Loans (Direct PLUS Loans) made under the William D. Ford Federal Direct Loan (Direct Loan) Program, Assistance Listing Number 84.268, with first disbursement dates on or after July 1, 2026, and before July 1, 2027.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
Fixed Federal Student Loan Rates 2026–27
If you get a Federal Direct Loan first disbursed on or after July 1, 2026 and before July 1, 2027, the fixed interest rates are: 6.52% for undergraduate Direct Subsidized and Direct Unsubsidized Loans; 8.07% for graduate and professional Direct Unsubsidized Loans; and 9.07% for Direct PLUS Loans (parents of dependent undergraduates and graduate/professional students). These rates are based on the 10-year Treasury high yield of 4.47% from the May 12, 2026 auction plus statutory add-on percentages.
Direct Consolidation Loan Rate Formula and Cap
If you apply for a Direct Consolidation Loan, the interest rate equals the weighted average of the interest rates on the loans you consolidate, rounded to the nearest higher one-eighth of one percent. For consolidation applications received on or after February 1, 1999 and before July 1, 2013 the rate may not exceed 8.25%, but for applications received on or after July 1, 2013 there is no 8.25% cap.
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Key Dates
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Next: 2026-18494, Annual Notice of Interest Rates for Variable-Rate Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program
Federal Student Aid announces the interest rates for Federal Direct Stafford/Ford Loans (Direct Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans), and Federal Direct PLUS Loans (Direct PLUS Loan), Assistance Listing Number 84.268, with first disbursement dates before July 1, 2006, and for Federal Direct Consolidation Loans (Direct Consolidation Loans) for which the application was received before February 1, 1999. The rates announced in this notice are in effect for the period July 1, 2026, through June 30, 2027.